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chinese assets continue to soar!

before the u.s. stock market opened on monday, popular chinese concept stocks continued to rise, with weilai and beike rising by more than 14%, jd.com rising by more than 7%, and alibaba rising by nearly 5%. last week, the nasdaq china golden dragon index rose by nearly 24%.

it is worth noting that there are hedge fund bosses who are bullish on chinese stocks. stephen jen, a british hedge fund tycoon, recently said that chinese stocks are seriously undervalued, and it is entirely possible for chinese stocks to rebound sharply driven by recent stimulus policies. days earlier, hedge fund legend david tepper said he was going all-in on chinese stocks and that this was a "buy it all" moment.

david chao, a strategist at invesco asset management, said optimism in the chinese market will continue. meng lei, a chinese equity strategist at ubs securities, also said that as easing policies are further implemented, more patient capital and long-term investors will enter the market.

chinese concept stocks continue to rise

chinese assets continue to be sought after by funds. before the u.s. stock market opened on monday, popular chinese concept stocks continued to strengthen. as of press time, weilai and beike have risen by more than 14%, iqiyi has risen by more than 11%, futu holdings and bilibili have risen by more than 9%, xpeng motors has risen by more than 8%, jd.com has risen by more than 7%, and alibaba has risen by more than 7%. baba and pinduoduo rose nearly 5%, while baidu and netease rose more than 3%.

in fact, last week, thanks to the government's continuous rollout of better-than-expected favorable policies, chinese concept stocks already experienced a fierce rise. that week, the nasdaq china golden dragon index rose nearly 24%, lufax holdings rose nearly 50%, bilibili rose more than 48%, jd.com and beike rose nearly 40%, pinduoduo, iqiyi, xpeng motors, futu holdings, gaotu group, etc. all increased by more than 30%, and alibaba, baidu, weilai, tiger brokers, and ctrip group also increased by more than 20%.

david tepper, a well-known hedge fund tycoon, said last week that china's latest policies were beyond expectations and that he would increase his allocation to chinese assets and had purchased more "china-related assets" after the federal reserve cut interest rates earlier this month. everything” including etfs, futures, etc.

recently, nick wilcox, managing director of the well-known hedge fund company man, also said that china's stock market is expected to continue its rebound momentum due to continued policy support. the optimism builds on improving earnings and the federal reserve's easing policy, which has given china more room to cut interest rates.

recently, stephen jen, ceo of the british hedge fund eurizon slj capital and the well-known proposer of the "dollar smile theory", also expressed his optimism about chinese stocks. stephen jen said, "investors have a low weight on all chinese stocks. chinese stocks are seriously undervalued and a sharp rebound is entirely possible."

foreign capital buys up chinese assets

on september 30, goldman sachs asia ficc and equity trader and vice president fred yin pointed out in a blog that last week, capital flows in the a-share and h-share markets were extremely active, and the total portfolio trading volume increased by 148% compared with the three-week average. %, the number of execution clients increased by 41%, and inflows reached 3.8 times the three-week average, setting a record for at least a year.

last week, the net buying amount of long investors reached 560 million u.s. dollars, mainly in consumer and financial stocks, while the net buying amount of hedge funds was 218 million u.s. dollars, and the performance of financial stocks was particularly outstanding. both types of investors have shown a clear "fear of missing out" sentiment, especially as the national day holiday approaches, the market enthusiasm has not weakened. foreign hedge funds have increased their efforts to chase china's large-cap stocks with strong liquidity, focusing on liquor and electric vehicles. batteries and other sectors.

in addition, data shows that last week (september 23 to september 27), the asset size of many overseas-listed chinese etfs surged, hitting a new high, and the net inflow of funds also hit a record high in the past year or even the past three years. the new high has become an important signal for foreign investors to be optimistic about chinese assets.

among them, kraneshares china overseas internet etf (kweb) received a net inflow of us$199 million last week, setting a new high since march 2023. its asset size also surged by more than us$1.2 billion in just two trading days, an increase of 26 %. in addition, net inflows into msci china etf-ishares (mchi) and ishares china large cap etf (fxi) last week reached us$254 million and us$497 million respectively, both hitting new highs in the past three years. as of september 27, kweb’s latest asset size has risen to approximately us$5.89 billion, making it once again the largest chinese stock etf listed in the united states.

it is worth noting that currently, renewed optimism about china’s stock market is also spreading around the world, with hedge funds selling u.s. technology stocks and buying heavily in mining and materials stocks.

china's economic stimulus policies have also warmed up the global commodity market. after the latest promotion policy to relax home purchase restrictions in china's three major cities, the trading price of singapore's iron ore surged by nearly 11%. these cities' major policies to liberalize home purchase restrictions have significantly boosted the demand prospects of the construction industry in the world's largest consumer of steel raw materials. separately, china's 10-year government bonds fell as investors turned to risky assets such as stocks in anticipation that widespread economic stimulus measures will revive economic growth.

meng lei, a chinese equity strategist at ubs securities, said that boosting stock market confidence is one of the focuses of current policy efforts. the policy intention may be to increase the wealth effect of the stock market, thereby indirectly having a positive cyclical effect on the economy. the newly established tools of the people's bank of china, including special re-lending for repurchase and holding increases and swap facilities for financial institutions, are expected to bring very real capital inflows to the a-share market. as loose policies are further implemented, more patient capital and long-term investors will enter the market.

david chao, a strategist at invesco asset management, said: "i think the optimism in the chinese market last week may turn into something more concrete and sustainable, because there seems to be a sweeping policy shift in china that may finally resolve the past three years. while there may still be debate about how these policy shifts have been implemented and whether enough has been done, i think a new direction has been set.”